Washington Authorize High-Cost Payday Lending

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Washington State Information


Legal Status:
Legal (Lender must have a small loan endorsement to their check casher license in order to make payday loans)

Citation:

Wash. Rev. Code Ann. 31.45.010 et seq.

Loan Terms:

Maximum Loan Amount: $700 or 30% of gross monthly income, whichever is less
Loan Term Max: 45 days
Maximum Finance Rate and Fees: 15%: first $500; 10%: remaining portion of the loan in excess of $500 up to the $700 maximum
Finance Charge for 14-day $100 loan: $15
APR for 14-day $100 loan: 390%

Debt Limits:

Maximum Number of Outstanding Loans at One Time: A company cannot hold a check or checks in an aggregate face amount of more than $700 plus allowable fees from any one borrower at any one time.
Rollovers Permitted: None (cannot repay loan with proceeds of another)
Cooling-off Period:
Repayment Plan: Borrowers are eligible for an installment plan at no extra cost if they notify lender on or before the loan is due. Plan is 90 days for debt of $400 or less and at least 180 days for larger debts.

Collection Limits:

Collection Fees: $25 NSF fee (one time per instrument); collection costs (excluding attorney's fees, interest and damages)
Criminal Action: Prohibited

Where to Complain, Get Information:

Regulator: Washington Department of Financial Institutions
Address: Division of Consumer Services, PO Box 41200 Olympia WA 98504
Phone: (360) 902-8700
Fax: (360) 725-7827

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